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CNN cuts ties with AP

By Ben Rooney, staff reporterJune 21, 2010: 4:59 PM ET

NEW YORK (CNNMoney.com) -- CNN announced on Monday that it will no longer use content from the Associated Press, ending a business relationship that had been in place since the cable network's inception.

Jim Walton, president of CNN Worldwide, said in a memo to employees that the decision to discontinue the network's use of the wire service was part of a strategy to "more fully leverage CNN's global newsgathering investments."

"We will no longer use AP materials or services," Walton wrote. "The content we offer will be distinctive, compelling and, I am proud to say, our own."

AP spokesman Paul Colford said in a statement that "we have been unable to reach agreement with CNN." He added that it was "unfortunate" that CNN's viewers will no longer be able to access AP stories, photographs and videos.

"We will continue to provide AP news to other TV networks and tens of thousands" of other media outlets, Colford said.

CNN had been using AP services since it began operating in 1980. But the network has been increasing its use of original material on different platforms since 2007 as part of its "content-ownership" program.

Walton said CNN will stop using all AP content immediately. The parties had been in talks ahead of the June 30 expiration of CNN's contract. Representatives from both sides declined to comment on what caused the negotiations to break down.

While the move was partly a business decision, Walton stressed that it was also motivated by other reasons, including a desire to differentiate CNN from its competitors.

"It will provide consumers with the unique news and information experience they expect from CNN," Walton said. "And it will make us more creative, resourceful and collaborative journalists and news professionals."

CNN will take steps to support the change, such as expanding the network's own wire staff and relying more on affiliates around the world, according to Walton.

Walton also said that CNN is entering into an arrangement with Reuters to "supplement breaking news coverage," although the memo did not specify the terms.

Time Warner (TWX, Fortune 500) is the parent company of CNN and CNNMoney.com.